On Tuesday, the Texas Senate unanimously passed Senate Bill 1 (SB 1), its version of the state budget proposal for the next two years. Senator Joan Huffman outlined the priority funding and key projects, including the Texas Water Funding, Dementia Prevention and Research Institute of Texas, public education, workforce development and more. 

The Senate spent roughly three hours discussing SB 1, which increases appropriations by more than $15 billion from the current budget. The Partnership’s Budget Explorer Tool is updated with the latest version of the Senate Base Budget. Use the tool to explore the following:

• Topline funding totals for state agencies
• Public education funding and targeted programs under the Texas Education Agency
• Funding for water and flood projects across various state agencies

Increased Education Spending

The committee substitute to SB 1 increased the base budget by about $4 billion, bringing the total spending proposal to $336 billion. 

The Texas Education Agency saw the addition of nine programs to the bill. Those include:

• $11 million for the Teach for America Program
• $10 million to boost school bus safety
• $7.5 million in start-up grants for Adult Education Programs in Texas schools
• $5 million for grants to support low-performing elementary schools
• $2 million to increase enrollment for College, Career, and Military Readiness programs
• $800,000 for five new employees at the State Board of Education

Senator Brandon Creighton noted in the SB 1 debate that the finance committee chose to maintain the Basic Allotment at $6,100 per student to increase funding for targeted programs instead. Sen. Creighton said the decision was influenced by testimony from supporters of funding specific programs instead of raising the basic allotment.

Water Funding Rising Higher

The proposed funding for Article VI, which covers agencies under the Natural Resources title, significantly decreased from the current budget. Senators proposed cutting Article VI funding by over $826 million, a 9.41% cut in spending. However, the funding decrease is misleading, as lawmakers have proposed adding $2.5 billion to the supplemental budget for the Texas Water Development Board, contingent on passing a related bill. This allocation is currently noted as a footnote in Article IX of the supplemental budget.

Regardless, funding for water projects was increased generally across the board in the committee substitute to SB 1.

The Texas Commission on Environmental Quality received increased appropriations for key water resource funds, including a $12 million increase for safe drinking water programs and a $5 million-plus increase in funding for water resource permitting.

Still on Tap

Lawmakers are still working to deliver a constitutional proposition to dedicate $1 billion annually to the Texas Water Fund for the next 10 years. House Joint Resolution 7 was unanimously voted out of the House Natural Resources Committee on March 19.

On Monday, the Senate Committee on Water, Agriculture, and Rural Affairs unanimously passed Senate Bill 7. This enabling legislation outlines the framework for spending the $1 billion in dedicated funding. The Senate wants 80% of the funding to go to new water supply sources, while the House wants more flexibility to use funding for infrastructure repair and maintenance.

Building Resilience

In addition to water supply funding, lawmakers are looking to increase funding for flood projects around the state. The Soil and Water Conservation Board is investing additional dollars in flood control dams—new construction and ongoing maintenance. If passed, total flood funding will reach over $254 million for the next two years.